8. Which of the following describes crowding out accurately? A) Government, businesses and consumers all borrow more money which creates more debt. B) The government borrows more money which leaves less money for businesses to borrow and spend. C) Banks reduce interest rates which causes government, businesses and consumers to borrow less. D) The government raises taxes and as a result consumers and businesses spend less. 9. An example of an automatic stabilizer is: A) Inheritance taxes B) Interest payments on the debt

8. Which of the following describes crowding out accurately? A) Government, businesses and consumers all borrow more money which creates more debt. B) The government borrows more money which leaves less money for businesses to borrow and spend. C) Banks reduce interest rates which causes government, businesses and consumers to borrow less. D) The government raises taxes and as a result consumers and businesses spend less. 9. An example of an automatic stabilizer is: A) Inheritance taxes B) Interest payments on the debt

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

8. Which of the following describes crowding out accurately?
A) Government, businesses and consumers all borrow more money which creates
more debt.
B) The government borrows more money which leaves less money for businesses to
borrow and spend.
C) Banks reduce interest rates which causes government, businesses and consumers to
borrow less.
D) The government raises taxes and as a result consumers and businesses spend less.
9. An example of an automatic stabilizer is:
A) Inheritance taxes
B) Interest payments on the debt

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